AdvanSix : 1Q26 Earnings Presentation

Published: 2026-05-08 06:35:17 ET ASIX

Published on 05/08/2026 at 06:35 am EDT

May 8, 2026

Executing Strategic Initiatives Amid Dynamic Market Conditions

Delivered Solid First Quarter Performance, with Focus on Full Year Outcomes

Commercial execution and sales volume improvement helped mitigate winter storm impacts and continued subdued industrial end market demand

Continuing to execute price actions, both freely negotiated and pass-through, to recover inflationary raw material input cost pressures

Disciplined focus on cost productivity, capital spending, turnaround execution and full year free cash flow generation

Anticipate significant sequential earnings and cash flow improvement in 2Q 2026

Navigating Dynamic Industry Conditions While Optimizing Operational and Commercial Performance

Anticipate balanced U.S. ammonium sulfate supply and demand fundamentals in heart of domestic planting season amid meaningfully higher sulfur input costs

Acetone spread over propylene costs expected to hold near cycle averages for full year 2026

Continue to optimize Nylon Solutions production output, inventories and sales volume mix in extended soft industrial end market environment

Progressing Key Growth, Cost & Strategic Initiatives

Evaluating expansion of integrated ammonia platform to meet growing regional demand for Diesel Exhaust Fluid (DEF)

Executing multi-year non-manpower fixed cost takeout program, targeting ~$30M in run-rate savings

Continue to expect FY26 Capex of $75-$95M

Appointed Patrick Day as SVP and CFO, effective April 27th

Sales

$404M

1Q26

($M)

1Q25 4Q25 1Q26

YoY Drivers

$404

$378

$360

+7%

Revenue growth driven by favorable chemical intermediates sales volume and higher ammonium sulfate pricing

Higher raw materials costs (sulfur and natural gas) impacting

ammonium sulfate margins

(91%)

$26

Insurance Proceeds

$26

$25

Lower earnings due to absence of ~$26M insurance proceeds, higher utilities costs, and ~$11M winter storm impact

1Q seasonal use of cash, as expected

Adjusted EBITDA

$5M

1Q25 4Q25 1Q26

Adjusted EBITDA

Margin

1.2%

Net Income (Loss): $23M ($3M) ($16M)

1Q25 4Q25 1Q26

QoQ Drivers

6.9%

1.2%

13.7%

(1250) bps

Higher chemical intermediate and nylon sales volume growth sequentially supported by improved operational performance

Earnings impacted by higher raw material input prices and higher plant costs driven by winter storm impacts

See Appendix in this presentation for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP measures

Sales

YoY Sales +7% QoQ Sales +12%

Product

Price +1%

Volume +6%

Price +8%

Volume +4%

Index

Nylon

CPL

~40%

~85%

~0%

~60%

% Formula /

($M)

~Flat

+1%

1Q25 4Q25 1Q26

140

141

128

+10%

1Q25 4Q25 1Q26

107

+14%

1Q25 4Q25 1Q26

YoY Raw Materials Pass Through (2%), Market-Based +3%

QoQ Raw Materials Pass Through +4%; Market-Based +4%

Volume up year-over-year driven primarily by Chemical Intermediates sales

Nylon resin volumes up sequentially due to improved operational performance; Higher Nylon Solutions export mix at lower average margins

Plant Nutrients pricing reflects higher nitrogen pricing amid increased sulfur input costs; Volume impacted by cautious buying down the value chain

Higher raw materials pass through pricing supporting sequential domestic caprolactam sales performance

End Market ASIX Exposure End Market Performance / Outlook

Ag / Fertilizer

+Higher nitrogen pricing environment; Sulfur nutrition demand growing 3-4%

Caution around North American crop prices and farmer profitability

Meaningfully higher sulfur input costs

Building & Construction

AIA forecasting ~3% commercial construction growth in 2026 and 3.5% growth in 2027

New builds / home sales yet to significantly recover in current interest rate environment

Plastics

Continued soft demand for auto, consumer durables and other industrial applications

Solvents

+Acetone anti-dumping duties into U.S. renewed for another 5 years

Moderated growth in construction, pharmaceutical and electronics industries

Packaging

Inflationary pressure and tariffs impacting demand for U.S. red meats

+ Positive Mixed Weak

Integrated Ammonia Platform - Diesel Exhaust Fluid (DEF) Growth Project

Leveraging Integrated Assets to Supply Growing Regional DEF Demand

Project / Market Overview

Entered into a process design and licensing agreement to assess expansion of our integrated ammonia platform to supply the growing regional DEF market

DEF is an EPA-mandated additive for reducing NOx emissions from diesel engines, with strong

and growing demand driven primarily by Class 8 vehicle usage in the Mid-Atlantic and Northeast

Strategic

Advantage

AdvanSix's geographic position uniquely enables reliable, domestic supply to meet growing demand in a market currently served by domestic production from other regions and imports

Hopewell site already produces all required DEF inputs - carbon dioxide, ammonia, and high-purity water

Project designed with no expected impact to AdvanSix's ammonium sulfate fertilizer production

Timing and Returns

Final investment decision targeted for 1H 2027

Multi-year capital investment supporting attractive financial returns with anticipated operational start-up in 2029

Partnering with an established technology provider and engaging an engineering services firm to complete front-end engineering and design, project scoping, and cost estimation

Value Drivers Supporting Through-Cycle Profitability and Sustainable Performance

Durable Competitive Advantage

Portfolio Resiliency

Long-Term Positioning

Leading global cost advantage in vertically integrated caprolactam production - unique combination of assets and business model core to our advantage

Largely insulated from reciprocal tariff impacts with ~90% of sales in the U.S.; Anti-dumping

duties in place for ammonium sulfate and acetone in the U.S.

Industry actions now apparent with announced European capacity rationalization in phenol/ acetone and caprolactam/ ammonium sulfate as well as reduced China output

Ammonia and Sulfuric Acid platform integration coupled with leading technology position underpins SUSTAIN Ammonium Sulfate granular growth and DEF expansion

Product mix and asset utilization agility enable navigation through multitude of cycles

45Q carbon capture tax credits and tax legislation meaningfully benefit cash flow

Healthy balance sheet provides optionality for further value creation

KPIs / Industry Metrics

1Q25

4Q25

1Q26

2Q26E

Input Costs

U.S. Benzene ($/MT)

~$875

~$800

~$950

$1,300-$1,350

U.S. Polymer Grade Propylene (c/lb)

~$0.45

~$0.31

~$0.39

$0.55-$0.58

Tampa Sulfur ($/LT)

$165

$310

$496

$655

NYMEX Natural Gas ($/MMBtu)

$3.65

$3.55

$5.04

$2.81(1)

Pricing & Spreads

AS Corn Belt Price ($/ST)

~$450

~$375

~$425

$475-500(2)

NA Resin - BNZ ($/MT)

~$1,350

~$1,225

~$1,200

$1,350-$1,400

Asia CPL - BNZ ($/MT)

~$575

~$700

$675-$700

Acetone - Small/Medium Buyer (c/lb)

~$0.60

~$0.49

~$0.52

$0.79-$0.82

Acetone - Large Buyer (c/lb)

~$0.53

~$0.41

~$0.48

$0.65-$0.68

Working actions and pricing mechanisms to recover inflationary raw material cost pressures

Benzene and propylene prices expected to increase in 2Q26; Trades promptly following underlying crude oil

Sulfur quarterly benchmarks continue to move higher on global supply tightness

Anticipate balanced U.S. ammonium sulfate supply and demand fundamentals in heart of domestic planting season despite caution around crop prices and farmer profitability

Navigating continued soft demand for nylon -monitoring for sustained reduction in global operating rates and further capacity rationalization

Acetone margins expected to hold near cycle averages for the full year 2026

Source: Green Markets, A Bloomberg Company, Tecnon Orbichem, Wood Mackenzie, and Chemical Market Analytics

Pricing as of 5/5/26

Forecast as of 5/1/26

Pre-Tax Income Impact by Quarter (1)

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

Timing driven by compliance, inspection and sustaining asset base

Primary Unit

Operation

~$10M

~$4M

~$20M

~$34M

Sulfuric Acid

~$2M

~$10M

~$30M

~$42M

Ammonia

~$5M

~$25M

~$35M

Sulfuric Acid

~$2M

~$7M

~$20M

~$2M

~$31M

Ammonia

~$3M

~$8M

~$18M

~$29M

Sulfuric Acid

~$1M

~$5M

~$44M(2)

~$50M

Ammonia

~$2M

~$1M

~$27M

~$30M

Sulfuric Acid

~$5M

~$3M

~$47M(3)

~$58M

Ammonia

~$5M

~$6M

~$14M

~$25M

Sulfuric Acid

$10-$15M

~$7M

$17-22M

Ammonia

Critical to supporting high utilization rates

Dedicated teams to improve effectiveness

Staggered across unit operations to maintain output

Proactive maintenance capex prioritized to mitigate risk and support safe, stable and sustainable operations

Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.

During the multi-site planned plant turnaround, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental $15M unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense and lost sales.

During the multi-site planned plant turnaround, additional required maintenance at our Hopewell plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates,

resulting in an incremental ~$17M unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense, and lost sales.

(in $ thousands)

Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment.

The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company's management to evaluate the Company's operating performance, enhance a reader's understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company's operations.

(in $ thousands)

Legal and professional fees associated with strategic regulatory matters and potential inorganic growth options, including costs associated with a transaction the Company is no longer pursuing

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Sales

(in $ thousands except share and per share amounts)

Disclaimer

AdvanSix Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 10:34 UTC.